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| Decline in house prices resumes | |
| (about 20 hours later) | |
| House prices in the UK fell by 0.4% in April, reversing some of the rise seen in March, according to the Nationwide. | |
| The building society's figures show that the pace of decline in house prices slowed, but the typical home still cost 15% less than a year ago. | The building society's figures show that the pace of decline in house prices slowed, but the typical home still cost 15% less than a year ago. |
| The price of the average property in the UK was £151,861 in April. | The price of the average property in the UK was £151,861 in April. |
| Figures from the Land Registry relating to March, also published on Thursday, showed different price shifts in different parts of England and Wales. | |
| The figures suggested typical property prices rose by 1.8% in the North East of England in March compared with February, but fell by 2% in the same period in the West Midlands. | |
| Change | |
| The Nationwide welcomed some of the moves made by Chancellor Alistair Darling in the Budget but warned this would not bring a swift turnaround in the market. | |
| ANNUAL HOUSE PRICE FALLS North East: 13.2% (average price £112,259)South West: 15.5% (£163,167)Wales: 15.3% (£117,266)London: 15.4% (£299,613)North West: 15.9% (£115,258)East Midlands: 16.4% (£120,301)South East: 17.6% (£187,357)Yorkshire and Humber: 15.5% (£121,919)East: 17.2% (£159,317)West Midlands: 16.5% (£126,820) Source: Land Registry Tips for getting on the property ladder | |
| Figures showed that prices fell 3.1% in the quarter to the end of April, compared with the previous quarter. | Figures showed that prices fell 3.1% in the quarter to the end of April, compared with the previous quarter. |
| This was less of a decline than than the 4.1% fall, using the same measure, seen a month ago. | This was less of a decline than than the 4.1% fall, using the same measure, seen a month ago. |
| The building society surprised many homeowners last month when it announced that prices rose by 0.9% in March compared with February. | |
| But it warned at the time against reading too much into the change, saying that it was not a sign that the market had turned. | But it warned at the time against reading too much into the change, saying that it was not a sign that the market had turned. |
| In a speech a week ago, Matthew Wyles, chairman of the Council of Mortgage Lenders (CML), said that the mortgage market remained "highly dysfunctional" and that 2009 would be a tough year. | In a speech a week ago, Matthew Wyles, chairman of the Council of Mortgage Lenders (CML), said that the mortgage market remained "highly dysfunctional" and that 2009 would be a tough year. |
| Now, Nationwide's chief economist Fionnuala Earley said that the housing market was "in the doldrums", partly because of limited lending from banks. | Now, Nationwide's chief economist Fionnuala Earley said that the housing market was "in the doldrums", partly because of limited lending from banks. |
| The state of the economy, and the threat of unemployment, meant demand for home loans would continue to fall, she added. | The state of the economy, and the threat of unemployment, meant demand for home loans would continue to fall, she added. |
| Stamp duty | Stamp duty |
| The Nationwide offered some support to Mr Darling for his Budget measures to get lending moving again. | The Nationwide offered some support to Mr Darling for his Budget measures to get lending moving again. |
| The extension of the stamp duty holiday - from September to the end of the year for properties of less than £175,000 - was also welcomed. | The extension of the stamp duty holiday - from September to the end of the year for properties of less than £175,000 - was also welcomed. |
| Falling prices meant that the average home was now priced below the threshold in every area of the UK except London and the capital's commuter belt. For first-time buyers only the capital has property prices typically above the threshold. | |
| Although this, as well as falling prices and low interest rates, was providing more of an incentive for first-time buyers, Ms Earley said that buyers were remaining cautious as they expected prices to keep dropping. | Although this, as well as falling prices and low interest rates, was providing more of an incentive for first-time buyers, Ms Earley said that buyers were remaining cautious as they expected prices to keep dropping. |
| Some surveys have suggested a shift in the housing market of late, most notably HM Revenue and Customs figures, which showed the number of homes sold in the UK jumped by 40% in March from the previous month. | Some surveys have suggested a shift in the housing market of late, most notably HM Revenue and Customs figures, which showed the number of homes sold in the UK jumped by 40% in March from the previous month. |
| Some commentators have been relatively upbeat about data, but Ms Earley said it was too soon to talk about a revival. | Some commentators have been relatively upbeat about data, but Ms Earley said it was too soon to talk about a revival. |
| "While affordability is indeed more favourable and there does seem to be some cautious optimism from some quarters, it is still far too soon to say that this is the start of a solid revival in the market," she said. | "While affordability is indeed more favourable and there does seem to be some cautious optimism from some quarters, it is still far too soon to say that this is the start of a solid revival in the market," she said. |
| Kevin Peachey, personal finance reporter, BBC News Homeowners, buyers and sellers sometimes face an information overload from the range of house price data published in the UK. Each of the major surveys have different ways of collecting and presenting views of the housing market. Monthly price comparisons can be erratic, so it is also worth considering longer-term trends such as annual price changes or three-month on three-month comparisons. These now suggest that house prices in the UK are still falling, although at a slower rate than late last year. House price surveys explained | |
| David Smith, senior partner at Dreweatt Neate estate agents, said: "A sideways-moving market like this, with the odd blip up or down, is how things look set to continue given the highly uncertain economic climate. | David Smith, senior partner at Dreweatt Neate estate agents, said: "A sideways-moving market like this, with the odd blip up or down, is how things look set to continue given the highly uncertain economic climate. |
| "Consumer confidence is weaker than it has been for many years and the property market will not recover until it returns." | "Consumer confidence is weaker than it has been for many years and the property market will not recover until it returns." |
| Regional prices | |
| The Land Registry, which records all completed property sales in England and Wales, publishes a house price survey which lags slightly behind data from the major lenders. | |
| It reported that in March, average property prices fell by 0.4% in March compared with February. That was a 16.2% fall compared with a year earlier and put the typical property price at £152,895. | |
| It found that the speed of house price falls appeared to be slowing, but a typical property now cost the same as in August 2004. | |
| All regions in England and Wales saw prices fall over the 12 months to the end of March. However, this ranged from a drop of 13.2% in the North East of England to a fall of 17.6% in the South East of England, the Land Registry said. |